Although the company has been around for years, mobile tracking and ad servicing company Phunware (NASDAQ:PHUN) only generated strong trader interest recently. That’s mostly because PHUN stock has been making such strong moves, in both directions.
Unfortunately, some folks are buying and selling Phunware shares without really understanding why the company has been in the headlines lately. This is not the best approach to trading.
To be honest, they’re often just pigeonholing PHUN stock as a meme stock, which isn’t a fair assessment. Phunware is a small but interesting business in its own right, memes or no memes.
Don’t get me wrong — the company has its challenges, which we will definitely address. Still, Phunware is a worthy addition to one’s watch list — especially for folks who can handle the roller-coaster ride.
PHUN Stock at a Glance
We can start our journey in 2019, when Phunware completed its merger with a capital investment firm called Stellar Acquisition III.
You might not think that the market would go crazy about a provider of development tools for mobile apps. Yet, amazingly, PHUN stock soared 1,988% in January of 2019.
Maybe it was because Phunware developed a blockchain-based security token. Or, perhaps the share-price rally occurred because the company had announced some new patents and developer programs.
It could also have been a case of the market’s mania for newly tradable tech-related businesses. In any case, PHUN stock popped briefly but then lost much of its value over the ensuing months.
Fast-forward to mid-October 2021, and the share price was drifting along at $1 and change. Suddenly, on Oct. 22, the stock flew to $24, only to retrace to $4 and change within a few days.
If your timing is on point, then PHUN stock could be a trader’s paradise. As an informed investor, though, you’ll definitely want to dig deeper into the company and find out why people have been talking about Phunware lately.
The Trump Bump
So, here’s a simple explanation as to what all of the hubbub is about.
Apparently, Phunware has been associated with former President Donald Trump’s 2020 presidential campaign.
As you may be aware, the former president is attempting to launch a social-media platform. Reportedly, Trump expects to upend Silicon Valley with a new app called Truth Social, which he says will “stand up to the tyranny of Big Tech.” That app will be a property of a newly formed social-media company known as Trump Media & Technology Group.
Meanwhile, a May 2020 USA Today article was circulating on social media. This piece highlighted the partnership between Phunware and Trump’s re-election campaign. This, evidently, was enough to get some traders speculating that Phunware would be the company to develop Trump’s platform.
Please note that, as of Oct. 26, there’s no confirmation that this will actually happen.
No Speculation Required
Really, there’s no need for informed investors to speculate about Phunware and Trump’s social media platform. Instead, you can just look at the known facts about Phunware.
For example, we know that Phunware is partnering with Vizzia Technologies to provide Vizzia with a digital front-door solution for mobile devices.
This will help Vizzia provide its mobile solutions to leading healthcare platforms that make use of Vizzia Technologies’ real-time location systems (RTLS) tech.
It’s also established that Phunware is capable of generating strong revenues.
For evidence of this, we can refer to the company’s second-quarter 2021 financial results.
During that quarter, Phunware generated $1.4 million in net revenues. And notably, the company’s Multiscreen-as-a-Service (MaaS) platform subscriptions and services revenues totaled $1.2 million.
Blockchain enthusiasts can also appreciate Phunware’s push into the digital tokenization space.
In particular, the company has “formally rolled out our entire blockchain-enabled Mobile Loyalty Ecosystem specific to PhunToken, PhunCoin and PhunWallet on a direct-to-consumer basis as promised,” according to Phunware President and CEO Alan S. Knitowski.
You don’t have to pay attention to rumors, memes and speculation.
Rather, you can choose to focus on the facts and invest based on what’s actually known about Phunware.
Moreover, as long as you maintain a small position size, you could try out an intriguing company and have a little bit of “phun” with a stake in Phunware.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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